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DROPBOX INC-CLASS A (DBX) Stock Fundamental Analysis

NASDAQ:DBX - Nasdaq - US26210C1045 - Common Stock - Currency: USD

31.88  -0.79 (-2.42%)

Premarket: 28.9 -2.98 (-9.35%)

Fundamental Rating

4

Overall DBX gets a fundamental rating of 4 out of 10. We evaluated DBX against 284 industry peers in the Software industry. While DBX has a great profitability rating, there are quite some concerns on its financial health. DBX has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

DBX had positive earnings in the past year.
In the past year DBX had a positive cash flow from operations.
In multiple years DBX reported negative net income over the last 5 years.
Of the past 5 years DBX 4 years had a positive operating cash flow.
DBX Yearly Net Income VS EBIT VS OCF VS FCFDBX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M -400M 600M

1.2 Ratios

DBX's Return On Assets of 22.39% is amongst the best of the industry. DBX outperforms 97.10% of its industry peers.
With an excellent Return On Invested Capital value of 30.25%, DBX belongs to the best of the industry, outperforming 97.83% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for DBX is above the industry average of 11.92%.
The last Return On Invested Capital (30.25%) for DBX is above the 3 year average (15.34%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 22.39%
ROE N/A
ROIC 30.25%
ROA(3y)14.62%
ROA(5y)6.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.34%
ROIC(5y)N/A
DBX Yearly ROA, ROE, ROICDBX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -50 -100 -150 -200 -250

1.3 Margins

Looking at the Profit Margin, with a value of 22.71%, DBX belongs to the top of the industry, outperforming 89.86% of the companies in the same industry.
DBX has a better Operating Margin (20.01%) than 87.32% of its industry peers.
In the last couple of years the Operating Margin of DBX has grown nicely.
DBX has a better Gross Margin (82.43%) than 87.68% of its industry peers.
In the last couple of years the Gross Margin of DBX has grown nicely.
Industry RankSector Rank
OM 20.01%
PM (TTM) 22.71%
GM 82.43%
OM growth 3Y34.27%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.07%
GM growth 5Y2.45%
DBX Yearly Profit, Operating, Gross MarginsDBX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60 80

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so DBX is creating value.
DBX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
DBX Yearly Shares OutstandingDBX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
DBX Yearly Total Debt VS Total AssetsDBX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.2 Solvency

DBX has an Altman-Z score of 1.79. This is a bad value and indicates that DBX is not financially healthy and even has some risk of bankruptcy.
DBX has a Altman-Z score (1.79) which is in line with its industry peers.
DBX has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.98, DBX is doing good in the industry, outperforming 65.22% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.98
Altman-Z 1.79
ROIC/WACC2.29
WACC13.24%
DBX Yearly LT Debt VS Equity VS FCFDBX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B 1.5B

2.3 Liquidity

DBX has a Current Ratio of 0.87. This is a bad value and indicates that DBX is not financially healthy enough and could expect problems in meeting its short term obligations.
DBX has a worse Current ratio (0.87) than 78.99% of its industry peers.
A Quick Ratio of 0.87 indicates that DBX may have some problems paying its short term obligations.
The Quick ratio of DBX (0.87) is worse than 78.62% of its industry peers.
Industry RankSector Rank
Current Ratio 0.87
Quick Ratio 0.87
DBX Yearly Current Assets VS Current LiabilitesDBX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

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3

3. Growth

3.1 Past

DBX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.13%, which is quite impressive.
The Earnings Per Share has been growing by 38.64% on average over the past years. This is a very strong growth
EPS 1Y (TTM)26.13%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%46%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.35%

3.2 Future

The Earnings Per Share is expected to grow by 1.06% on average over the next years.
Based on estimates for the next years, DBX will show a small growth in Revenue. The Revenue will grow by 2.60% on average per year.
EPS Next Y3.29%
EPS Next 2Y3.31%
EPS Next 3Y-0.34%
EPS Next 5Y1.06%
Revenue Next Year0.51%
Revenue Next 2Y1.14%
Revenue Next 3Y2.33%
Revenue Next 5Y2.6%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
DBX Yearly Revenue VS EstimatesDBX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1B 2B 3B
DBX Yearly EPS VS EstimatesDBX Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 1 2 3

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 12.70 indicates a correct valuation of DBX.
90.94% of the companies in the same industry are more expensive than DBX, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 30.30, DBX is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.30, DBX is valued correctly.
Based on the Price/Forward Earnings ratio, DBX is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
DBX is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.7
Fwd PE 12.3
DBX Price Earnings VS Forward Price EarningsDBX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

88.04% of the companies in the same industry are more expensive than DBX, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of DBX indicates a rather cheap valuation: DBX is cheaper than 93.84% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.31
EV/EBITDA 15.45
DBX Per share dataDBX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 6 8

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of DBX may justify a higher PE ratio.
PEG (NY)3.86
PEG (5Y)0.33
EPS Next 2Y3.31%
EPS Next 3Y-0.34%

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0

5. Dividend

5.1 Amount

No dividends for DBX!.
Industry RankSector Rank
Dividend Yield N/A

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DROPBOX INC-CLASS A

NASDAQ:DBX (2/20/2025, 8:10:12 PM)

Premarket: 28.9 -2.98 (-9.35%)

31.88

-0.79 (-2.42%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners93.39%
Inst Owner Change3.06%
Ins Owners4.25%
Ins Owner Change-0.82%
Market Cap9.62B
Analysts52.63
Price Target30.59 (-4.05%)
Short Float %9.76%
Short Ratio7.24
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.59%
Min EPS beat(2)11.62%
Max EPS beat(2)13.55%
EPS beat(4)4
Avg EPS beat(4)10.97%
Min EPS beat(4)3.15%
Max EPS beat(4)15.54%
EPS beat(8)8
Avg EPS beat(8)10.52%
EPS beat(12)12
Avg EPS beat(12)9.27%
EPS beat(16)16
Avg EPS beat(16)10.34%
Revenue beat(2)0
Avg Revenue beat(2)-0.48%
Min Revenue beat(2)-0.7%
Max Revenue beat(2)-0.25%
Revenue beat(4)0
Avg Revenue beat(4)-0.48%
Min Revenue beat(4)-0.7%
Max Revenue beat(4)-0.25%
Revenue beat(8)2
Avg Revenue beat(8)-0.16%
Revenue beat(12)3
Avg Revenue beat(12)-0.17%
Revenue beat(16)7
Avg Revenue beat(16)-0.08%
PT rev (1m)4.22%
PT rev (3m)12.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)19.69%
EPS NY rev (1m)0%
EPS NY rev (3m)6.14%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
Industry RankSector Rank
PE 12.7
Fwd PE 12.3
P/S 3.79
P/FCF 11.31
P/OCF 10.93
P/B N/A
P/tB N/A
EV/EBITDA 15.45
EPS(TTM)2.51
EY7.87%
EPS(NY)2.59
Fwd EY8.13%
FCF(TTM)2.82
FCFY8.84%
OCF(TTM)2.92
OCFY9.15%
SpS8.41
BVpS-1.81
TBVpS-3.48
PEG (NY)3.86
PEG (5Y)0.33
Profitability
Industry RankSector Rank
ROA 22.39%
ROE N/A
ROCE 36.98%
ROIC 30.25%
ROICexc 85.96%
ROICexgc N/A
OM 20.01%
PM (TTM) 22.71%
GM 82.43%
FCFM 33.51%
ROA(3y)14.62%
ROA(5y)6.23%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)15.34%
ROIC(5y)N/A
ROICexc(3y)84.07%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)18.75%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y9.78%
ROICexc growth 5YN/A
OM growth 3Y34.27%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.07%
GM growth 5Y2.45%
F-Score7
Asset Turnover0.99
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.98
Debt/EBITDA 2.41
Cap/Depr 20.76%
Cap/Sales 1.16%
Interest Coverage 250
Cash Conversion 135.39%
Profit Quality 147.56%
Current Ratio 0.87
Quick Ratio 0.87
Altman-Z 1.79
F-Score7
WACC13.24%
ROIC/WACC2.29
Cap/Depr(3y)18.59%
Cap/Depr(5y)37.12%
Cap/Sales(3y)1.27%
Cap/Sales(5y)3.26%
Profit Quality(3y)171.3%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)26.13%
EPS 3Y17.94%
EPS 5Y38.64%
EPS Q2Q%46%
EPS Next Y3.29%
EPS Next 2Y3.31%
EPS Next 3Y-0.34%
EPS Next 5Y1.06%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%1.35%
Revenue Next Year0.51%
Revenue Next 2Y1.14%
Revenue Next 3Y2.33%
Revenue Next 5Y2.6%
EBIT growth 1Y42.42%
EBIT growth 3Y46.81%
EBIT growth 5YN/A
EBIT Next Year30.35%
EBIT Next 3Y9.85%
EBIT Next 5Y9.42%
FCF growth 1Y15.58%
FCF growth 3Y15.67%
FCF growth 5Y16.13%
OCF growth 1Y15.05%
OCF growth 3Y11.14%
OCF growth 5Y13%